China’s Continued Gold Buying Spree Marks Shift Away from Dollar Dependence

China’s central bank bought gold in June for the eighth month in a row, raising its reserves to 73.9 million troy ounces, or about 2,298 metric tons.

This move, confirmed by official data, makes China the world’s sixth-largest holder of gold. The gold is now worth nearly $243 billion, up from $242 billion in May.

China keeps adding gold to reduce its dependence on the US dollar. Today, gold makes up just under 7% of China’s total reserves. This is much lower than the 20% average among major central banks, and far below the US, where gold is two-thirds of reserves.

China’s gold-to-GDP ratio is also low, at 0.9%, compared to the US at 2.8% and Russia at 9.2%. These numbers show China still has room to buy more. China’s approach stands out because it buys gold steadily, month after month, instead of making big, one-off purchases.

This careful pattern matches a global trend: central banks worldwide have bought more than 1,000 tons of gold each year for the last four years. Most central banks say they plan to keep increasing their gold reserves.

They do this to protect against inflation, currency swings, and political risks. China’s government also wants to boost domestic gold production by at least 5% by 2027.

This plan supports the central bank’s strategy and helps shield the country from outside shocks. China’s gold buying is not just about making money. It is a way to make the country’s finances safer and more independent.

By building up gold, China protects itself if the US dollar loses value or if international tensions rise. This steady, quiet shift matters for everyone.

It shows that big countries are preparing for a less stable world. Gold, a simple metal, is now at the center of a complex global story about power, safety, and independence.